Easiest Ways to Save Money on Homeowners Insurance

By Compuquotes Team on March 27th, 2008

Homeowners insurance is a necessity for anyone who is purchasing a home. Many lenders require you to have a certain amount of insurance prior to giving you the money to purchase your home. The homeowners insurance industry is highly competitive which leaves consumers with better coverage for lower prices.

You should always shop around when it comes to an investment such as your homeowners insurance. You can possibly know that you are getting the best coverage for the lowest price unless you check out several companies and compare. Try to get in with a group insurance policy whether it is through your employer or through an organization that you belong to. Get in with any group you can because group rates are always cheaper than individual rates.

If you live in an area that is high risk you may be eligible for government insurance. This doesn't guarantee you the lowest rate, you still need to check out other companies and compare rates and coverage. Be sure to check and make sure that the company you are interested in is licensed to work in your state. If you find yourself with a company that is not licensed they can basically get away with almost anything because they don't have a state insurance department to answer to.

You can also contact your state's department of insurance to see if they have any suggestions to offer you to help you save money on your homeowners insurance. They should be able to help you determine which companies may suit you as well as tell you which companies you should avoid. You can also contact the Better Business Bureau who can forward any complaints regarding an insurance company you are interested in.

When you are interested in a specific homeowners insurance company you should check their financial rating prior to purchasing a policy. Go with a company that has a strong financial rating because they are far more likely to be reliable if you suffer from a loss and need to file a claim. Companies with a high rating will also be much less likely to be in financial trouble or on the verge of bankruptcy.

You can also look into the many discounts that are offered to those with homeowners insurance policies such as senior citizen or retired discounts. Insurance companies realize that older people tend to be home much more often, and most of the damage such as fire and theft occur when people are out of the home running errands or working.

Believe it or not but your credit rating has an impact on your homeowners insurance premiums. If you have any issues on your credit report then you may want to think about cleaning it up.

Make sure you don't over-insure. Every year take a look at your policy and make sure it is accurate and up to date. Be sure that you are only insuring the home's structure itself, and the possessions inside, not the land itself.